How to Start a Small Group Elderly Foster Home

by Karen Ellis, Demand Media

Elderly foster homes allow for greater independance.

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Elderly foster care homes, also called adult foster care homes, are on the rise. They will be needed even more as the "baby boom" population grows increasingly older. As individuals become older, they require varying degrees of assistance. An elderly foster care home caters to those individual needs, while allowing as much independence to the elderly person as possible. Many states require that there be a live-in manager at the facility. Also, be aware that some states will dictate the amount that can be charged and how many residents you can have.

Step 1

Choose the degree of care your home will offer. You can offer services for the elderly that don't require constant medical assistance. If you choose to accept those that do require around-the-clock medical supervision, you will have to hire trained medical aids or a practical nurse to be on duty at all times. Even daily medications must be administered by a trained medical aid, unless the elderly residents are able to be responsible for their own medications.

Step 2

Do market research. Determine how many elderly people are in your area through the United States Census Bureau. Research the local competitors. See what services they offer and what prices they charge.

Create a business plan. Plan out how the foster home will operate, what services it will offer and what prices it will charge. Plan out what type of facility you will need and how much capital you will need. Include how you will obtain the capital. Plan out how you will market your foster home. If you need to apply for a business loan, you will need to produce a professional-looking business plan.

Step 4

Purchase or lease a location. Most states require a bathroom for every three to four residents. However, this does vary among different states. Try to choose a location that has other sites that will fill the needs of the residents, such as a senior center, churches, drug stores, medical facilities. The home will need a van, perhaps with handicap accommodations, to transport residents to doctor's appointments and other outings.

Step 5

Prepare an employees manual, as well as a daily operation schedule. Employees need to know, and follow, all rules and regulations. They must know what to do in case of emergencies. An elderly foster care home will run more efficiently with a schedule of events.

Step 6

Acquire all zoning permits for your elderly foster home location. Obtain all licenses required. Learn and follow all state regulations required for elderly foster homes. Your local health department can advise you of these regulations and requirements. Your facility will most likely require an inspection before you can do business. Most states require that you register your home with the state social services department. Food preparation also will need to follow state guidelines. This will also vary, depending on the state. Each kitchen employee may be required to obtain a food handler's license.

Step 7

Hire an accountant to set up an accounting system, specifically for an elderly foster home. The accountant also will apprise you of any taxes or nonprofit rules and regulations. You will be required to register the foster home with the Internal Revenue Service and your state treasury in most states. You will need to apply for an Employee Identification Number for employee payroll purposes.

Step 8

Visit an insurance company and have an agent inform you of the types of insurances you are required to carry for your facility. Certainly you will need liability, theft and fire insurance. Other types of insurance may be required depending on state regulations and the degree of medical assistance offered.

Step 9

Hire employees. The number and type of employees needed will depend on the size of the home as well as the level of care offered. At the very least, you will need someone on the site at all times. This person should have a cardiopulmonary resuscitation (CPR) certificate. Your local Red Cross or Community College will offer courses in CPR. A background check should be done on each employee before they are allowed to work in the facility. You may also hire personal aids, medical aids, practical nurses, office personnel, front desk personnel, and kitchen and serving employees. Many times, the personal or medical aids will work as food serving staff during meal times.

Step 10

Prepare contracts for the elderly foster care residents. This form would include exactly the care to be provided. This contract must be signed by the resident or family member, before the resident is accepted. Have an attorney familiar with such contracts draw it up. This will make sure that all stipulations are legal and that you, the owner, and the resident are protected.

Step 11

Print up flyers to be posted in churches, senior centers and community centers. Always get permission to do so. Leave flyers and a business card at the front desks of doctor's offices and hospitals. If it is affordable, place ads in local newspapers and periodicals. Start a website, and also advertise in other local websites.

About the Author

Karen Ellis has been a full-time writer since 2006. She is an expert crafter, with more than 30 years of experience in knitting, chrocheting, quilting, sewing, scrapbooking and other arts. She is an expert gardener, with lifelong experience. Ellis has taken many classes in these subjects and taught classes, as well.

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